TransCanada Agrees to Build 550 Megawatt Québec Power Plant
CALGARY, Alberta - June 11, 2003- (TSX: TRP) (NYSE: TRP) - TransCanada Corporation today announced that it has agreed to develop a 550 megawatt natural gas-fired cogeneration power plant in Québec.
The power plant will be located in the Bécancour Industrial Park, near Trois-Rivières and will supply its entire power output to Hydro-Québec Distribution under a 20-year power purchase contract. The plant will also supply steam to certain major businesses located within the industrial park.
"TransCanada already has a significant investment in Québec through our natural gas transmission business," said Hal Kvisle, TransCanada's chief executive officer. "We look forward to increasing our investment in the province with the Bécancour Cogeneration Project as well as future projects in natural gas transmission and power generation."
The cost of the Bécancour project is estimated at approximately $500 million. Construction of the facility is expected to begin next year, pending receipt of regulatory approvals. It is expected the plant will be in service in late 2006.
TransCanada is a leading North American energy company. We are focused on natural gas transmission and power services with employees who are expert in these businesses. Our network of approximately 38,000 kilometres of pipeline transports the majority of Western Canada's natural gas production to the fastest growing markets in Canada and the United States. Including the Bécancour plant, TransCanada owns, controls or is constructing more than 4,500 megawatts of power - an equal amount of power can meet the needs of about 4.5 million average households. Our common shares trade under the symbol TRP on the Toronto and New York stock exchanges.
Note: All financial figures are in Canadian dollars unless noted otherwise.
FORWARD LOOKING INFORMATION
Certain information in this news release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in this information may differ from actual results or events. Factors which could cause actual results or events to differ materially from current expectations include, among other things, the ability of TransCanada to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability and price of energy commodities, regulatory decisions, competitive factors in the pipeline and power industry sectors, and the current economic conditions in North America. For additional information on these and other factors, see the reports filed by TransCanada with Canadian securities regulators and with the United States Securities and Exchange Commission. TransCanada disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
- 30 -